Commonwealth Held Spectrum
Consultation paper
May 2017
Department of Communications and the Arts
May 2017
Disclaimer
The material in this consultation paper is of a general nature and should not be regarded as legal advice
or relied on for assistance in any particular circumstance or emergency situation. In any important
matter, you should seek appropriate independent professional advice in relation to your own
circumstances.
The Commonwealth accepts no responsibility or liability for any damage, loss or expense incurred as a
result of the reliance on information contained in this consultation paper.
This consultation paper has been prepared for consultation purposes only and does not indicate the
Commonwealth’s commitment to a particular course of action. Additionally, any third party views or
recommendations included in this consultation paper do not reflect the views of the COMMONWEALTH, or
indicate its commitment to a particular course of action.
Copyright
© Commonwealth of Australia 2017
The material in this discussion paper is licensed under a Creative Commons Attribution—
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More information on this CC BY license is set out at the creative commons website:
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discussion paper can be sent to: Spectrum Branch, Department of Communications and the Arts, GPO
Box 2154, Canberra, ACT, 2601.
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© Commonwealth of Australia 2017
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Contents
Summary of draft proposals .................................................................................................. 3
Introduction .......................................................................................................................... 4
The Spectrum Review .........................................................................................................................4
Recommendations regarding government holdings ................................................................4
Purpose and scope ................................................................................................................ 4
Purpose ...............................................................................................................................................4
Scope ..................................................................................................................................................6
The Government’s role in spectrum ....................................................................................... 7
As the regulator ..................................................................................................................................7
As a policy advisor ..............................................................................................................................7
As a user..............................................................................................................................................8
The value of spectrum to government ................................................................................. 10
International comparisons ................................................................................................... 10
United Kingdom ............................................................................................................................... 11
United States ................................................................................................................................... 11
Draft proposals.................................................................................................................... 12
A strong governance framework .......................................................................................... 13
Membership .................................................................................................................................... 14
Proposed two-year program ........................................................................................................... 14
Improving transparency....................................................................................................... 15
Retaining benefits through sharing and trading of spectrum ................................................ 16
Conclusion and next steps ................................................................................................... 16
Feedback options ................................................................................................................ 17
Appendix A: Commonwealth government spectrum holders (within scope of this paper) ..... 18
Appendix B: International spectrum management frameworks ............................................ 19
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Summary of draft proposals
1.
A strong governance framework
Establish an advisory committee comprising relevant Commonwealth government agencies to
provide advice to the Minister for Communications on issues of spectrum policy and identify and
implement whole-of-government efficiency improvements that will deliver and enhance the
management of Commonwealth spectrum holdings.
2.
Improving transparency
The Government should publish a consolidated report outlining the value and use of
Commonwealth spectrum holdings every two years. To facilitate this portfolio agencies should
provide information on the their spectrum holdings by value (price paid) and number of licences;
the utilisation-over-time and purposes for which spectrum holdings are used; and future
spectrum requirements including the timing of new spectrum allocations.
3.
Retaining benefits through sharing and trading of spectrum
The Government should explore the implementation of a whole-of-government approach to the
identification of sharing and trading mechanisms, including the examination of foreign
government approaches and emerging technologies and processes to determine if there are
opportunities for the Government to engage in sharing and trading of Commonwealth held
spectrum.
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Introduction
The Spectrum Review
The Department of Communications released its Spectrum Review (the review)1 in March 2015.
In August 2015 the Government announced it would implement the recommendations of the review,
including agreement to:
1.
replace the current legislative arrangements with new legislation that removes prescriptive
process and streamlines licensing for a simpler and more flexible framework
2.
better integrate the management of public sector and broadcasting spectrum to improve the
consistency and integrity of the framework
3.
review spectrum pricing to ensure consistent and transparent arrangements to support the
efficient use of spectrum and secondary markets.
Recommendations regarding government holdings
Noting that Commonwealth spectrum management policy was a separate matter for Government, the
review recommended that the following reforms be considered2:
1.
requiring public sector agencies that hold spectrum to regularly report the value of their holdings
2.
permitting agencies to either lease or sell the spectrum and retain the benefit of doing so.
These recommendations seek to enhance spectrum efficiency by improving transparency and
incentivising Commonwealth spectrum holders to participate in spectrum sharing and trading.
While a good starting point, a review of spectrum literature as well as consideration of the measures
being undertaken by governments, both internationally and domestically, suggest that a broader lens
could be applied to this issue. To this end, this paper seeks not only to address the review’s
recommendations but also to identify other reforms that could deliver improvements to the efficiency
of Commonwealth spectrum holdings.
Purpose and scope
This paper seeks stakeholder views and opinions on reform options that will improve the efficiency and
effectiveness of Commonwealth spectrum management over the longer term. Draft proposals within
this consultation paper should be treated as for-information-only, and have not been officially endorsed
by Government. Feedback received will inform development of a final report for consideration by
Government. The final report will set out staged reforms to the management of Commonwealth
spectrum holdings in the context of the broader spectrum reform framework.
Purpose
Spectrum is essential to a digitally networked economy and a major contributor to Australia’s economic
and social wellbeing. It is a resource that supports essential services such as safety-of-life and security
1
2
Spectrum Review 2015, www.communications.gov.au/publications/spectrum-review-report
Spectrum Review 2015, 2.10 Recommendation 2 – Government Spectrum Use, page 35,
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and improves the quality of life of users. It is critical infrastructure enabling production for industrial,
commercial, educational and other social services. The economic value of Australia’s spectrum to the
national economy is estimated to be $177 billion over 15 years3.
Technology has changed substantially since 1992 when the current regulatory framework was
introduced. The framework has served the nation well and been a source of international
competitiveness. However, sector wide changes are challenging the efficiency, productivity and
accessibility of the current arrangements for spectrum management. As technology advances, there are
increasingly novel ways to use spectrum to communicate and send information. This constant
development means there is increasing demand for spectrum arising from an expanding array of uses.
In addition, Australians as a whole are early adopters of new technologies, typically leading the world in
the uptake of the latest technological products and services.
The extent to which the benefits of spectrum are realised or improved upon will depend in part on the
ability of the spectrum management regulatory arrangements to accommodate rapid technological
change and respond to increasing demand.
Commonwealth Government spectrum holdings are managed by individual agencies, each with their
own governance arrangements. There are no whole-of-government mechanisms to ensure holdings are
managed efficiently or effectively. There is little to assure the Government that spectrum used to
deliver services and capabilities to the Australian public is used in the most effective and appropriate
way.
Over recent years technological advancements have increased demand for spectrum in both the public
and private sectors. This has – and will continue to – place increasing demand on the Government to
ensure spectrum allocation is efficient, regulation is effective and improvements that promote the
efficient management of spectrum are identified and implemented.
The increase in demand is illustrated by looking at how central mobile technology has become to
operation of modern day Australia. The number of wireless mobile broadband subscriptions in Australia
has increased from 47 subscriptions per 100 citizens in 2010 to 114 subscriptions per 100 citizens in
20154, the 6th highest in the OECD and well above the OECD average of 85.5 subscriptions per 100
individuals. The deployment of fifth generation (5G) mobile technologies will also place upward pressure
on demand for mobile data services.
Demand will also be driven by the continued expansion of the Internet of Things (IoT), the increased use
of unmanned aerial vehicles, machine-to-machine technology, smart transport, automated farming and
other yet identified uses. In addition to increasing private sector demand, the government will need to
consider spectrum for new public use technologies, for example, smart cities and intelligent transport
systems. The full scale of spectrum requirements may not become evident until many years after the
implementation of these new technologies.
Increased demand and corresponding scarcity of spectrum will increase scrutiny of government
spectrum holdings. While some agencies may seek to improve the efficiency of their spectrum holdings,
there is currently little incentive to reduce holdings or to identify improvements in a whole-ofgovernment context. There is no coordinated approach to future public sector demand or systematic
consideration of the policy issues that government may need to make as both user and regulator.
3 ‘The
economic value of spectrum’ – Research report prepared for the Department of Communications by the Centre for
International Economics, January 2015.
4 OECD (2016), Wireless mobile broadband subscriptions (indicator). doi: 10.1787/1277ddc6-en (Accessed on 11 October 2016)
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International experience shows that public sector spectrum reform is complex and staged over a
number of years. The common thread to these reforms is a strong governance framework that enables
issues to be considered in a whole-of-government context across each reform period.
A coordinated governance framework will allow for the delivery of flexible approaches to spectrum
management in the future. Increased transparency of Commonwealth holdings is a key requirement to
support a consolidated governance framework as it allows for measures of efficiency, effectiveness, and
appropriateness to be developed while also assisting to identify economies of scale and other synergies
such as areas of commonality or redundancy within Commonwealth holdings.
The options for reform explored in this paper seek to set parameters to support this initial framework.
Scope
The reforms explored in this paper only extend to the spectrum managed at the Commonwealth level
(see Appendix A for a list of the Commonwealth departments and agencies within the scope of this
paper).
The term ‘Commonwealth spectrum holdings’ is used broadly through the paper to represent all
spectrum assigned to Commonwealth holders including that used by a commercial operator on behalf
of a Commonwealth user. The paper does not limit the scope to any specific bands, footnoting5 or
licensing processes. Rather, the broader reform principles proposed within the paper are intended to be
applied to Commonwealth spectrum holdings where appropriate. For example, it may not be
appropriate to include detail of some Commonwealth holdings in transparency measures where issues
of national security are involved and similarly, there may be little justification to subject some holdings
to pricing reform approaches if market-based mechanisms for pricing are already in place.
The National Broadcasters, ABC and SBS, are explicitly excluded from the scope of this paper. Broadcast
spectrum pricing and allocation are currently being reviewed as part of a separate process.
Government Business Enterprises (GBE) that hold spectrum (such as NBN Co. Ltd (nbn) and Australia
Post) are also excluded from the scope of this paper as GBEs operate as Commonwealth companies at
arm’s length from the government. GBE’s spectrum pricing arrangements are similar to or the same as
other non-Government users of spectrum.
The GBEs are also excluded to remove any potential competitive advantage that may be garnered from
participating in the proposed Government Spectrum Steering Committee (discussed in detail later in the
paper). The Government’s Competitive Neutrality Principles specify that ‘GBEs should not enjoy any net
competitive advantage simply as a result of their public sector ownership’. Being part of the committee
may be considered a conflict of interest for nbn, as the company will continue to be in the market for
spectrum in the future.
As part of the wider spectrum reforms, the Department of Communications and the Arts will consider
how to encourage efficient use of spectrum for GBE spectrum holders.
Management of spectrum held by state/territory governments is not specifically addressed. However, it
is recognised that there are certain inter-governmental relationships between Commonwealth and
5
Footnotes in the international Table of Frequency Allocations (Article 5, the ITU Radio Regulations), to which Australia is a
signatory, specify how frequencies are to be assigned or used. Article 5 informs the Australian Radiofrequency Spectrum Plan,
which applies these footnotes along with so-called ‘AUS’ footnotes that are unique to the Australian radiocommunications
environment. Some AUS footnotes are used to earmark certain frequency bands for specific government functions, for example
defence.
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other government users around specific spectrum allocations (for example 400 MHz harmonised
government spectrum). Commonwealth involvement in these relationships is not necessarily outside
the scope of anything proposed within this paper.
Matters relating to Public Safety Mobile Broadband (PSMB) capability and the findings of the
Productivity Commission’s (PC) 2016 report are not addressed in this paper. In response to the PC’s
findings, the Australian Government has announced that it would establish a committee of senior
officials to consider fully scoped proposals for a nationally inter-operable PSMB capability from states
and territories. A report will be prepared for the Council of Australian Governments in 2017.
While pricing for Commonwealth held spectrum is touched upon in this paper, it will be further
explored as part of the Spectrum Pricing consultation paper. As most Commonwealth users are subject
to the same pricing structure as other users, proposals from the Spectrum Pricing consultation paper
will also apply to Commonwealth users.
The Government’s role in spectrum
As the regulator
The Commonwealth Government is the largest holder of spectrum in Australia with the Department of
Defence being the primary user. The Government is also the regulator of spectrum in Australia through
the Australian Communications Media Authority (the ACMA). Spectrum is regulated under the
Radiocommunications Act 1992 (the Act) and the ACMA’s spectrum management functions are set out
in the Australian Communications and Media Authority Act 2005. Unlike a number of overseas
jurisdictions, responsibility for all spectrum regulation resides solely with the ACMA rather than being
split across a number of agencies.
Planning of Australia’s radiofrequency spectrum is bound by international spectrum harmonisation
standards as derived through the International Telecommunication Union (ITU) Radio Regulations6.
Australia, as a member state of the ITU, plays an active part in the development of the Radio
Regulations through the quadrennial, treaty-level, World Radiocommunication Conference (WRC)
meetings. Australia’s obligations under the Radio Regulations are reflected in the Australian
Radiofrequency Spectrum Plan (ARSP), which is prepared by the ACMA. In addition to international
harmonization through the ITU, there are some frequency bands covered by bi-lateral or multi-lateral
treaty arrangements. These include bands used by NASA and European Space Agency projects in
Australia under Australia-US or Australia-Europe agreements.
Specific sectors are also subject to regulatory oversight from other United Nations’ bodies such as the
International Civil Aviation Organisation and the International Maritime Organisation. Compliance with
these standards and arrangements facilitates safe, efficient and cost-effective transport providing trade
benefits and growth opportunities for Australian businesses and travel and a wider range of consumer
options for Australian citizens.
As a policy advisor
The Minister for Communications is responsible for managing spectrum policy on behalf of the
Commonwealth, with the Department of the Communications and the Arts and the ACMA providing
advice to the Minister on spectrum policy set in a complex regulatory environment with increasing
demand on spectrum availability. Spectrum policy must also take account of broader government
6
Harmonisation arrangements ensure that safe and efficient worldwide operation of critical services and infrastructure is not
impeded by differing international standards while also providing the economies of scale required to allow device
manufacturers to bring products to market.
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policies to which spectrum is a key input (e.g. The Smart Cities Plan). Currently there is no coordinated
approach to forecasting future public sector demand or systematic consideration of the policy issues
and potential trade-offs that Government may need to make as both user and regulator.
Australian policy interests must also be represented at the international forum of the ITU
Radiocommunication Sector (ITU-R). This forum meets every three to four years at the World
Radiocommunication Conference (WRC) to revise radio regulations, the international treaty governing
radiofrequency spectrum use and satellite orbits. The WRC is transforming from a technical to a policy
forum, with competing domestic and international policy issues7 arising during WRC negotiations.
Increasingly these issues are cross-portfolio and require considered policy oversight to ensure
Australia’s negotiating position reflects the Government’s broader interests. The recent Review of the
Australian Communications and Media Authority recommended that head of delegation roles in key
international forums, including the WRC, should be transferred to the Department, and that it take
responsibility for developing policy positions and signing the final acts. It further recommended that
clear guidance and negotiating parameters be provided by the Department to heads of delegation.
As a user
Data provided by the ACMA shows that in February 2017 36 Commonwealth Government agencies
were licenced to access spectrum across Australia.
Measuring the totality of Commonwealth agency spectrum use is difficult. Factors such as bands
allocated via footnotes or through international harmonisation can produce misleading results.
Although a band has been allocated to a particular use it does not necessarily indicate that those bands
are being actively licensed for use by Commonwealth users. Footnotes can also specify that the band
may have a non-Commonwealth secondary user or simply be an intention that the band be given
priority to a certain purpose, rather than a strict requirement. This also affects the determination of the
extent to which the Commonwealth is denying use to other market participants through its own stock of
holdings.
The following chart shows the top 10 Commonwealth holders of spectrum by number of accesses and
total megahertz licenced bandwidth. It’s worth noting that the chart does not provide any measure of
utilisation, rather it is the summation of bandwidth and number of accesses. As not all bandwidth is in
the same area, this provides a rough guide only.
7
Review of the Australian Communications and Media Authority Draft Report, May 2016, page 38
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Figure 1: Commonwealth Government spectrum – 10 largest users by bandwidth and spectrum accesses 21
February 2017.
Historically, international harmonisation through footnoted bands has prioritised public sector use of
spectrum over private sector use, with allocations to public users in those bands potentially being
considered generous. Arguably this is justified as there is an expectation that the Government will
provide a range of services and capabilities that either cannot or should not wholly be provided by the
private sector. These are often of vital national importance and include capabilities such as defence,
aviation and maritime safety, meteorology and scientific research.
Noting the extensive spectrum holdings within the Defence portfolio, the Department of Defence has
established a Defence Spectrum Office (DSO) to coordinate spectrum management across the armed
forces and the Department more broadly. The DSO has its own spectrum management strategies that
operate within the broader radiocommunications regulatory framework which is administered by the
ACMA.
In regard to non-Defence government spectrum holders, many agencies may only hold a small number
of licences and do not require the formal governance arrangements in place in Defence. However, all
agencies – irrespective of the size of their holdings – need to demonstrate efficient spectrum use and
consider opportunities to improve efficiency of their spectrum.
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To this end under current arrangements there is no consolidated reporting or other external
accountability measures to provide Government with an indication of the efficiency with which these
holdings are being managed.
The value of spectrum to government
Spectrum is of critical importance to the Commonwealth. The ability to access and use spectrum
enables the Commonwealth to provide important services and capabilities to the Australian public.
As is the case in the private sector, government users for the most part obtain access to spectrum
administratively rather than through market mechanisms. Commonwealth spectrum holders generally
pay an administrative price to access spectrum using the same formula as applied to non-government or
commercial spectrum users. Department of Defence is charged a reduced price in part due to the
planning and technical restrictions that apply to the spectrum that is used. In certain situations the
Department of Defence, are excluded from licensing requirements and therefore exempt from licence
charges8.
To a large extent the use of administrative pricing is driven by the need to comply with internationally
harmonised standards which make certain spectrum bands unavailable for other uses.
While this formula provides a consistent and transparent way of determining licence prices it does not
necessarily reflect the underlying value of spectrum as the price paid reflects the minimum value of
spectrum to the buyer (either government or private buyer). When attempting to measure the value of
spectrum to the Commonwealth, the relevant question is the additional costs that would be incurred by
Government in delivering public goods without the benefit of spectrum. These additional costs could be
much greater than the price paid for spectrum.
The public good characteristics of the services enabled through government held spectrum sometimes
make it difficult to measure the true value of spectrum to the Commonwealth. When the Government
decides to provide spectrum for the provision of public goods and capabilities it has potentially chosen
to forgo other higher monetary value outcomes, however the incremental public value can greatly
outweigh the administrative cost paid for use. Any allocative inefficiencies that arise out of the
Commonwealth holding onto spectrum without demonstrating strong public value will likely, over time,
have negative effects on the general public and broader economy.
The Spectrum pricing consultation paper will review administrative prices in more detail, and excluded
user arrangements will be explored further in the general legislative reforms.
International comparisons
Internationally, governments have begun to explore and implement reforms focused on improving the
efficiency and management of Government spectrum holdings. Measures include agency-level
reporting, demand forecasting, release of targets for public sector spectrum, financial incentives to
encourage agencies to relinquish or share unused/underused spectrum and consideration of spectrum
as part of procurement decisions.
The following provides an overview of the reform programs being implemented in the United Kingdom
and the United States.
8 Division
4, Part 1.4, Radiocommunications Act 1992
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United Kingdom
Following completion of the Independent Audit of Spectrum Holdings Report (the Cave Review) by
Professor Martin Cave in 20059, the United Kingdom Government has implemented a range of reforms
aimed at improving the efficiency of spectrum management in public sector bands.
These reforms initially focused on improving the transparency of public sector spectrum holdings, wider
use of Administered Incentive Pricing, implementation of regulatory tools to enable trading and the
investigation of band sharing opportunities. Over the last six years, the focus has shifted to facilitating
the release of public sector spectrum for private sector use. In 2010, the UK Government set a target to
release or share 500 MHz of public sector spectrum by 2020. To date the release of 384 MHz has been
secured10.
The 10 year time frame recognises the long lead time required to release spectrum. Prior to releasing
spectrum, feasibility studies and remediation work is undertaken to address issues such as international
harmonisation requirements, the movement of existing users and managing transitional and
interference processes11.
When a positive economic case for releasing public sector spectrum is established (through a costbenefit analysis), financial incentives have been made available to cover remediation costs where a
department is unable to meet the costs from within its budget. The introduction of Administered
Incentive Pricing, tiered to reflect private sector demand and the opportunity cost of continuing public
sector use, also provides a financial incentive as departments can release valuable spectrum to minimise
their Administered Incentive Pricing charges.
Strong governance and institutional arrangements have underpinned these reforms. This enables
spectrum policy issues to take account of whole-of-government objectives. In recognition of the
potential improvements to economic growth arising from spectrum release the UK Spectrum Strategy
Committee (UKSSC) was established to oversee the spectrum reform and reallocation policies.
Co-chaired by senior officials from the Department for Culture, Media & Sport and the Ministry of
Defence, the UKSSC was formed to bring government (including departments, agencies and statutory
bodies) together to coordinate the policies and plans necessary to efficiently manage spectrum.
The UKSSC released a Strategy for Management of Major Public Sector Spectrum Holdings in 200912,
outlining its action plan to implement the recommendations arising from 2005 report.
United States
The Government Accounting Office and the Commerce Spectrum Management Advisory Committee
(within the National Telecommunications and Information Administration) have recommended a
number of reforms to improve spectrum efficiency.
9
Independent Audit of Spectrum Holdings, http://www.spectrumaudit.org.uk/pdf/caveaudit.pdf
Enabling UK growth: Public Sector Spectrum Release Programme annual report, April 2016, page 13
11 Enabling UK growth: Public Sector Spectrum Release Programme annual report, April 2016, page 5.
12 A Strategy for Management of Major Public Sector Spectrum Holdings, April 2009,
http://webarchive.nationalarchives.gov.uk/20090609003228/http://www.berr.gov.uk/files/file46420.pdf
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The 2012 Middle Class Tax Relief and Job Creation Act included provisions to encourage agencies to
more efficiently manage their spectrum holdings. Provisions included13:


Amending existing statutes to authorise the use of auction receipts deposited into the Spectrum
Relocation Fund to cover agencies’ spectrum relocation and sharing costs, including planning
costs
Authorise the Director, Office of Management and Budget (OMB) to make payments from the
Fund in advance of a scheduled auction to encourage quicker completion of spectrum relocation
or sharing.
The Act also directed OMB to update and revise its guidance under Circular A-11 (Preparation,
Submission, and Execution of the Budget)14 to incorporate incentives to use spectrum more efficiently,
thus enabling spectrum allocated for federal use to be made available for other purposes. This included
the requirement for Federal agencies to include in “their budget justification for procurement of major
radio spectrum-dependant communications-electronics systems consideration of the economic value of
spectrum being used”. Further, budget justifications for procurement of systems are required to address
a number of spectrum-related matters including15:



In request for proposal to procure the system, the requirement that the respondents address
spectrum efficiency factors
Whether the system will share spectrum with other Federal or non-Federal systems/operations
and the nature and extent of the sharing relationship
Identify improvements in spectrum efficiency and effectiveness between the replacement and
existing system.
Separately, the United States Defence Spectrum Organization has implemented strategic plans that
embrace spectrum sharing, emphasise the need for advances in spectrum efficiency, flexibility, and
adaptability for defence systems; agility in defence spectrum operations; and, timely evaluation and
response to spectrum regulatory and policy changes affecting defence.
Further detail on international approaches, including the chronology of key reforms, is at Appendix B.
While it is recognised that these jurisdictions have differing institutional and regulatory arrangements
and operating contexts there is much still that can be learnt from these international experiences and
applied in an Australian context.
Draft proposals
Given increasing demand for spectrum, the importance of the services and capabilities provided by the
Commonwealth through spectrum and the broader economic trade-offs the government makes when
holding spectrum, there is an obligation on the Commonwealth to ensure that processes are in place to
continually identify and implement efficiency improvements to the management and use of spectrum
holdings.
The reforms proposed below incorporate the findings of the review and lessons from international
experiences in Government spectrum reform. The international experiences highlights that any reform
to the management of Commonwealth spectrum holdings will require staged implementation.
13
http://www.gao.gov/duplication/action_tracker/Spectrum_Management/action1#t=1
Circular No. A-11 preparation, submission, and execution of the budget, July 2016,
https://www.whitehouse.gov/sites/default/files/omb/assets/a11_current_year/a11_2016.pdf
15 Circular No. A-11 preparation, submission, and execution of the budget, July 2016, page 191-192.
14
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The implementation should initially focus on creating appropriate governance arrangements and
developing robust data collection processes. Once these frameworks have been established the
identification and implementation of longer-term improvements can be explored.
A staged approach will also allow for the broader spectrum reforms (new radiocommunications
legislation and pricing reforms) to be fully implemented.
These proposals have not been agreed by the Government but rather set out a proposed direction. Your
feedback to these proposals will inform the final report to Government.
A strong governance framework
DRAFT PROPOSAL 1
Establish an advisory committee comprising relevant Commonwealth government agencies to provide
advice to the Minister for Communications on issues of spectrum policy and identify and implement
whole-of-government efficiency improvements that will enhance the management of Commonwealth
spectrum holdings.
The Minister for Communications is responsible for managing spectrum on behalf of the
Commonwealth. Historically, Government spectrum holders have primarily considered themselves users
of spectrum rather than parties to the Government’s overarching policy objective of efficient spectrum
management.
In 2007 the Independent Review of Government Spectrum Holdings (the IRGSH) noted that the ACMA
may be required to make spectrum decisions with implications that extend deep into government
policy, however there is no authoritative whole-of-government view about spectrum priorities16.
Separately, the Review of the Australian Communications and Media Authority17 noted that there is a
lack of clarity as to decisions which are best made by the regulator and those which are policy decisions
for government, particularly in areas that are increasingly contested such as spectrum allocation.
There is also an increased need to consider policy at the whole-of-government level ahead of
international forums. The World Radiocommunication Conference (WRC) is transforming from a
technical to policy forum, with competing domestic and international policy issues18 arising during WRC
negotiations. While Australian Government representatives participate in the relevant working groups
there is no forum to specifically consider domestic spectrum policy issues from a whole-of-government
perspective in the lead up to WRC.
An overarching governance body, a ‘Government Spectrum Steering Committee’ (the committee),
would provide an appropriate framework to facilitate whole-of-government consideration on issues of
spectrum policy. The committee could also identify and implement wide ranging improvements to the
management of Commonwealths spectrum holdings.
Under this framework each agency would continue to manage its own spectrum holdings, with the
committee providing guidance to the Minister for Communications and the Government on issues of
spectrum policy and management. This includes identifying, evaluating and driving initiatives which
16
Independent Review of Government Spectrum Holdings, April 2007, SpectrumWise Radiocommunications Consulting, page
12.
17 Review of the Australian Communications and Media Authority Draft Report, May 2016,
www.communications.gov.au/file/17746/download?token=jnR3DlMs, page 6
18 Review of the Australian Communications and Media Authority Draft Report, May 2016, page 38
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would improve the overall efficiency of Commonwealth spectrum holdings, formulating whole-ofgovernment positions on Commonwealth spectrum issues (including those relating to international
forums and harmonisation obligations), and identifying and evaluating emerging risks and opportunities
across the broader spectrum management landscape where they relate to the Government as a user of
spectrum. Under this framework, a working group would also be established to provide support and
advice to the committee.
Membership
Proposed membership of the committee would be open to all significant Commonwealth government
users of spectrum19 that consider spectrum management issues to be essential to operation. Ideally
committee members would be senior level staff from within each organisation who are able to provide
direction and assistance to ensure the committee can deliver measureable outcomes. Membership of
the working group would be comprised of representatives of the same departments/agencies, but with
an operational knowledge of key issues to be discussed. Central agencies and other related parties, such
as state and territory government departments, while not having membership on either the Committee
or working group, would have a standing invite in an observer role (or will be engaged on an as needed
basis).
While not a formal member of the body, the ACMA’s role would be as a technical advisor that provides the
committee, and subsidiary working group, with the required expertise for examining issues and
developing advice. The ACMA will retain ultimate responsibility for spectrum planning and licence
allocation decisions consistent with its statutory obligations.
Proposed two-year program
The committee would deliver an assessment to the Minister on the efficiency of Commonwealth held
spectrum, including potential areas for reform and key linkages between spectrum policy and other
government policies. The Department of Communications and the Arts has already commenced a
Commonwealth-wide stocktake on the use, policy settings and related governance approaches to
spectrum management across the Commonwealth. The first analysis of this information will be on the
major holders of Commonwealth spectrum.
In particular, the committee will review how the Commonwealth could engage with trading or sharing
of spectrum towards the goal of increased efficiency. The overall assessment on the efficiency of
Commonwealth holdings, and proposed improvements, would be presented as a reform roadmap,
outlining the key dependencies and milestones required over several years.
The committee will also assist in the development of coordinated Australian Government positions on
spectrum policy matters arising in international forums, in particular the WRC. The next WRC is
scheduled for 2019, prior to which there will be a number of Asia-pacific region and domestic Australian
preparatory group meetings.
The committee will also be an important forum to discuss implementation and policy in relation to
reform of the Radiocommunications Act 1992.
The work plan and necessity for the Committee, and working group, would be reviewed after two years.
19
Including the seven Commonwealth departments that account for approximately 99 per cent of all Commonwealth
department spectrum bandwidth holdings and any other Commonwealth agency whose operations are significantly impacted
by their ability to access and use spectrum.
Commonwealth Held Spectrum—
consultation paper
www.communications.gov.au
www.arts.gov.au
www.classification.gov.au
Page 14 of 20
Department of Communications and the Arts
May 2017
Improving transparency
DRAFT PROPOSAL 2
The Government should publish a consolidated report outlining the value and use of the
Commonwealths spectrum holdings every two years.
To facilitate this portfolio agencies should provide information on the their spectrum holdings by value
(price paid) and number of licences; the utilisation-over-time and purposes for which spectrum holdings
are used; and future spectrum requirements including the timing of new spectrum allocations.
The Spectrum Review proposed regular reporting of the value of Commonwealth public sector spectrum
holdings. It was hoped that by improving the transparency of Commonwealth spectrum holdings
efficiencies could be more easily identified and implemented.
At a macro level the Australian Radiofrequency Spectrum Plan (Spectrum Plan), provides visibility of the
types of services (including some government uses) that can operate in each band. Further, information
regarding spectrum holdings can be derived from the ACMA’s online register of licences although at
times this register has issues of currency and data quality. There is limited information available
regarding the prices paid, the purposes for which agencies hold spectrum and the extent to which these
holdings are used or plan to be used in the future.
In some cases this information is intentionally not disclosed to the public, for example, in cases where
disclosure may compromise national security or defence. Outside of this, the lack of a regular and
consistent approach to the reporting of government held spectrum makes it difficult to objectively
assess the efficiency of government spectrum use and therefore scope for improvements.
There may be elements of public sector spectrum holdings that could be of significant value to the
private sector (or even could be put to better use by other Commonwealth organisations). If alternative
bands could be identified for existing holders to move to, thus vacating the valuable bands for
alternative use, improvements to spectrum allocation could be achieved.
Additionally, it may be the case – either due to the historical assignment of spectrum or changes in
technology – that spectrum provided to government is no longer in use. In these cases vacating these
bands may lead to increased use if other private or public sector entities use this vacated spectrum.
A comprehensive whole-of-government examination of significant spectrum requirements prior to
assignment will ensure that issues are identified early in the allocation process and allow for the
exploitation of potential economies of scale. It will also ensure that procurements are conducted taking
account for the needs of government users, the Commonwealth’s broader spectrum policy framework
and the wider Australian economy.
Coordinated and detailed regular reporting of Commonwealth spectrum holdings could enable
efficiency improvements such as identification of excess holdings and cross department economies of
scale.
The Department has already written to all Commonwealth departments and agencies that hold
spectrum seeking information on the amount of spectrum accessed or managed for subsidiary users,
the spectrum’s purpose and intensity of use, a spectrum outlook for the next 5 years, and details on
formal processes or frameworks in relation to management or procurement processes. This baseline
report on Commonwealth use will be collated by the Department (in consultation with the ACMA) and
published on the Department’s website with the final report on Commonwealth held spectrum. The key
focus of the report will be on the major holders of spectrum in the Commonwealth.
Commonwealth Held Spectrum—
consultation paper
www.communications.gov.au
www.arts.gov.au
www.classification.gov.au
Page 15 of 20
Department of Communications and the Arts
May 2017
Retaining benefits through sharing and trading of spectrum
DRAFT PROPOSAL 3
The Government should explore the implementation of a whole-of-government approach to the
identification of sharing and trading mechanisms, including the examination of foreign government
approaches and emerging technologies and processes to determine if there are opportunities for the
Government to engage in sharing and trading of Commonwealth held spectrum.
The Spectrum Review recommended that agencies be permitted to retain the financial benefits of
leasing or trading spectrum to incentivise them to seek out and engage in such arrangements in order to
boost the efficiency of Commonwealth spectrum holdings.
Some Commonwealth spectrum holders have partaken in ad-hoc spectrum sharing arrangements. This
is usually facilitated by the holder agreeing that the ACMA issue an apparatus licence to another user in
a frequency bands which are footnoted for government purposes.
These are often only short term localised arrangements which are entered into without any financial
transaction taking place beyond what is required for the purchase of the apparatus licence.
Anecdotally financial implications do not seem to be a significant consideration for Commonwealth
spectrum holders in determining if they will engage in sharing and trading arrangements. Rather it is
other non-financial incentives, such as a lack of demand, administrative burden and certainty
requirements, which are more likely to limit engagement in sharing and trading arrangements.
Additionally, there are no clear market signals to indicate that there is enough demand to support the
operation of a strong secondary market for large parts of government held spectrum. This lack of
demand has limited the market from maturing in a manner that will be of financial benefit for
Commonwealth users. The key future demands point to spectrum sharing rather than trading being the
foundation to increased efficiency.
The applicability of trading or sharing within (and beyond) Commonwealth held spectrum will be a key
deliverable for the committee, supported by policy research from the Department in consultation with the
Department of Finance. This research will focus on the non-financial barriers and identify opportunities
where any financial gains accruing to the Commonwealth through trading or sharing arrangements can
be used to further enhance the productivity and effectiveness of government spectrum use.
Conclusion and next steps
Noting the importance that Commonwealth use of spectrum affords through the provision of public
goods and services and the operation of national capabilities, it is clear that a more cohesive
management of spectrum issues at the Commonwealth level would allow for the Commonwealth to
identify and implement opportunities to improve the allocative and productive efficiency of the
Commonwealths spectrum holdings. It would also allow the Government to form more robust and
considered positions on issues of spectrum policy.
Given the increasing importance spectrum plays in the growth of the economy and the daily lives of
Australians, the Commonwealth should seek to ensure its spectrum management processes are
consistent with world best practices by setting up frameworks that focus on continual improvement in
spectrum efficiency over the long-term.
A cohesive, transparent and robust framework to identify and implement improvements to
Commonwealth management of its spectrum holdings will allow the Government to position itself as a
Commonwealth Held Spectrum—
consultation paper
www.communications.gov.au
www.arts.gov.au
www.classification.gov.au
Page 16 of 20
Department of Communications and the Arts
May 2017
leader in spectrum management and respond proactively to changing demands and applications of
spectrum in a considered way for the benefit of Australia.
Feedback options
The Government welcomes feedback on the ideas presented in this paper and any other ideas to make
broadcasting spectrum planning, access and licensing simpler. The easiest way to provide feedback is to
visit our website at www.communications.gov.au/what-we-do/spectrum/spectrum-reform.
Alternatively, you can provide written comments to:

Spectrum Reform
Department of Communications and the Arts
GPO Box 2154
Canberra ACT 2601

Or by email to [email protected]
Submissions close on 30 June 2017.
Please include:




contact name
organisation name, if applicable
contact details, including telephone number, postal and email addresses
confirmation whether or not your submission can be made public – published – or kept
confidential.
All submissions to be made public need to meet the Digital Service Standard for accessibility. Any
submission that does not meet this standard may be modified before being made public.
If your submission is to be made public, please ensure you do not include any personal information that
you don't want to be published.
Commonwealth Held Spectrum—
consultation paper
www.communications.gov.au
www.arts.gov.au
www.classification.gov.au
Page 17 of 20
Department of Communications and the Arts
May 2017
Appendix A: Commonwealth government spectrum holders
(within scope of this paper)
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


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

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
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




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Australian Antarctic Division
AirServices Australia
Australian Communications and Media Authority
Australian Crime Commission
Australian Federal Police
Australian Institute of Marine Science
Australian Maritime Safety Authority
Australian Nuclear Science and Technology Organisation
Australian Radiation Protection and Nuclear Safety Agency
Australian Securities & Investments Commission
Australian Sports Commission
Australian War Memorial
Bureau of Meteorology
CSIRO (and CSIRO Marine Research)
Department of Agriculture
Department of Defence
Department of Environment
Department of Health
Department of Immigration and Border Protection
Department of Infrastructure and Regional Development
Department of Industry, Innovation and Science
Department of Parliamentary Services
Department of Social Services
Director of National Parks
Family Court of Australia
Geoscience Australia
Great Barrier Reef Marine Park Authority
High Court of Australia
Indigenous Land Corporation
National Gallery of Australia
National Library of Australia
National Museum of Australia
National Portrait Gallery of Australia
National Science & Technology Centre
Office of the Official Secretary to the Governor-General
Old Parliament House
Commonwealth Held Spectrum—
consultation paper
www.communications.gov.au
www.arts.gov.au
www.classification.gov.au
Page 18 of 20
Department of Communications and the Arts
May 2017
Appendix B: International spectrum management frameworks
Country
Governance
structure
Reporting of public
spectrum use
No, but plans to create a
real-time spectrum use
database
Administrative incentive
pricing (aka opportunity
cost pricing). Plans to
develop new valuation
method.
Yes
United
Kingdom
Interdepartmental
spectrum policy body led
by the UK Spectrum
Strategy Committee
(UKSSC)
United States
of America
National
telecommunications and
Information
Administration (NTIA)
No, but plans to create a
real-time spectrum use
database
Not yet developed, but
plans to develop a
statistically valid method
for valuation
Yes – used reallocation
fund since 2004
Ministry of Business,
Innovation and
Employment
No
N/A
No
New Zealand
No, but plans to create a
real-time spectrum use
database
N/A
Yes
Canada
Ministry of Innovation,
Science and Economic
Development (formerly
Industry Canada)
No
Unclear other than values
attained through final
auctions
Yes – used reallocation
fund since 1997
France
Interdepartmental
spectrum policy body led
by the Angence Nationale
des frequences (French
Radio Spectrum
Assignment Authorities)
Ministry of Internal
Affairs and Ministry of
Communications
No
N/A
Yes
Japan
Commonwealth Held Spectrum—
consultation paper
Valuation
www.communications.gov.au
www.arts.gov.au
www.classification.gov.au
Reallocation
initiatives
Page 19 of 20
Department of Communications and the Arts
May 2017
Timeline comparison of international reform activities
Year
United Kingdom
2004
Chancellor of the Exchequer
commissioned Independent audit of
Spectrum Holdings
2005
Professor Martin Cave publishes
Independent Audit of Spectrum
2006
Government releases response to
report and agrees to implement
recommendations and establishes
UKSSC
United States of America
ACMA commissioned SpectrumWise for
Independent Review of Government
Spectrum Holdings
SpectrumWise presents final report to
the ACMA
2007
Department of Commerce releases
Federal Strategic Spectrum Plan—
outlining the state of Government
use of spectrum
2008
2009
2010
Australia
UKSSC releases Management of
Public Sector Spectrum Holdings,
action plan for implementing the
recommendations from the 2005
report
Public Sector Spectrum Release
Programme established, target of
2020 set to release 500 MHz of
public sector spectrum.
FCC releases the National Broadband
plan—a plan to improve spectrum
management.
Plan announced for NTIA and FCC to
make 500 MHz of public/commercial
spectrum available for wireless
broadband by 2020
PCAST release report recommending
improved spectrum reporting and
identifying priority data bands on a
cost-benefit basis.
2012
PCAST publish report outlining new
framework for spectrum
management, calling for 1,000 MHz
of public spectrum to be released and
public spectrum information
database.
Minister for Communications
announces review of Australia’s policy
and spectrum management framework
2014
2015
NTIA announced it was on track to
achieve 500 MHz goal, having freed
up 245 MHz of spectrum
Government announces it will
implement the recommendations from
the review
2016
Consultation paper on Commonwealth
spectrum holdings to be released by
end of 2016
2017
Final report, including action plan and
timeframes to be released
Commonwealth Held Spectrum—
consultation paper
www.communications.gov.au
www.arts.gov.au
www.classification.gov.au
Page 20 of 20